Estate of Ona E. Hendrickson - Page 27




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               The record contains no evidence of the aggregate fair market            
          value, at decedent's death, of the family farm land securing the             
          Land Bank loan that was not included in decedent's estate.                   
          Miscellaneous Facts Relating to Land Bank Loan                               
               The deeds by which decedent gave her interest in the family             
          farm land to the children during 1979-93 provided that the gifts             
          were made subject to the Land Bank debt and that the debt was                
          expressly assumed by the grantees.                                           
               No claims were filed against decedent's estate by the Land              
          Bank or by any of the signatories of the promissory note                     
          representing the Land Bank loan.                                             
               Payments of principal and interest have continued to be made            
          on the Land Bank loan since decedent's death.  As of March 1,                
          1998, the balance of the Land Bank loan had been reduced to                  
          $636,814 from the $825,068 balance at decedent's death.                      
               Petitioner admits that, if decedent had made more than her              
          proportionate share of the Land Bank loan payments, she would                
          have been entitled to contribution from the other signatories of             
          the promissory note under Indiana law.                                       
                                       OPINION                                         
          I.   Did Decedent Make Taxable Gifts of Investment Income                    
               Received by Garry's Estate During 1979-93?                              
               In the statutory notice, respondent determined that                     
          decedent, as a beneficiary of Garry's estate, became entitled to             







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